A better-than-expected performance by manufacturers has shone a ray of hope on the UK economy but economists warned it may be a false dawn.

The Office for National Statistics (ONS) revealed a 1.2 per cent rise in manufacturing output between April and May, defying expectations of a further deterioration following the shock 0.7 per cent drop the previous month.

Meanwhile, separate figures showed the UK’s trade deficit narrowed in May as exports increased at their fastest pace for more than two years, boosting hopes that the sector can help the UK emerge from its double-dip recession.

Economists warned moving a bank holiday from May to June for the Diamond Jubilee may have flattered the figures, which should be treated with caution.